Technical & Fundamental Oil Reports Specialists

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Watch the short-term MAs

Published Tuesday, February 23rd, 2016

Introduction.  The contracts experienced yet another (“springboard”) move from the s/t MA supports to the resistances above. The rally has again failed to make much impression on the resistances and the market remains with no targets either way. A lot more work to the upside is needed before there is any street cred’ to these rallies. They may temporarily discomfort the bears but not much more. The crudes and RBOB are all above the s/t MAs, but Heat and Gasoil are struggling a bit being below the 5 and 8s but above the 13. The contracts look vulnerable up here – tread with caution. WTI is above all the s/t MAs starting around 32.73 – the 5 and 34 day MAs. A move below here would suggest more of a dip to test the lower s/t MAs around 31.93 (8) and 31.74 (13). The long term support coming off the Dec 2008 low is at 32.40, and a move and close (m/c) back below here would not be positive. A m/c below the 13 day MA around 32.89 would suggest lower numbers and a move to the recent lows. It is important that this contract stays over the 32.73 area. If it does so it has a good chance of firmer numbers up to around 34.21 – recent high.

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Posted by Robin Bieber